vacating a judgement? Due to being on SSDI

[anykey]

I was on SSDI when I bought my house. Now- there is a 15k judgment on me- and thus on my house. I was reading that I could vacate the judgment??

http://www.carreonandassociates.com/articles/faqjudgments.htm

PS_ I have been reading BK Manual II on this site.

Thanks to all

[justbroke]

Having not read that article at the link you reference, I don't see how you can vacate the judgment, without the debt being discharged in the Bankruptcy and that the judgment impairs an exemption, or is a "worthless" judgment.

For an impairment, say you live in Florida where there's an unlimited homestead exemption. Any judgment lien on the home could be vacated because they can't lien your home due to the homestead exemption.

For a worthless judgment, say you live in Ohio where the homestead exemption is $5,000. However, the home is worth $200K, but you owed $195K. The judgment lien is worthless because the combination of the superior mortgage plus your exemption, doesn't leave any money left for the judgment lien to attach to.

Remember, this is in the Bankruptcy context. Remember that vacating a judgment doesn't necessarily mean it won't bounce back. This is why, in the Bankruptcy context, we file Motions to Avoid Lien. Notice that we don't vacate the judgment, we destroy the actual lien.

So the real questions are whether you have filed bankruptcy already? If you have already received a discharge in bankruptcy, did this judgment lien come about because of a post-discharge event? If so, the homestead exemption for PA is extremely poor. You will really need to work with an attorney if this judgment lien is enforceable against your homestead. I can't really answer that.

[anykey]

I filed a chapter 7 some years ago and must wait 2 more years.

My house is worth around $45k- and I owe $24K, the judgment is 15k or 21K. (they might have added fees)

I am plotting how I could sell my house and get money from it. As I want to live in a quieter area. So lets figure 45k, - 6K in selling fees, that leaves 39k. Of which I owe 24k- which brings me down to 15k. with the judgment if means at best case scenario- I break even.

PA allows the fed exemption rate.

I must wait 2 more years before I could chapter 7.

If I stop paying the mortgage that is $221 a month. If a foreclosure takes 18 months- that is.. almost 4k.

PA is a recourse state.


So- 4k to walk away- 15k best case scenario.

4K- is maybe 10 months rent. (local rents are min $400) To get the next place- even 15K is not alot of money.

Any thoughts?

[justbroke]

Bankruptcy exemptions are different versus exemptions allowed in a civil trial for a money judgment. So, I never considered "federal" exemptions at all. I was using standard Pa. exemptions.

In any event, I don't know what to tell you. You may want to get some consults from some asset-planning attorneys to see what the best thing for you is. You could file Chapter 13, but you'd probably end up paying that whole Judgment at 100%, unless you don't have much income. That Chapter 13 might be for 3 years -- if you're under the median income.

[GoingDown]

If you need help finding information about vacating a judgment, you might want to try the Debtorboards forum. They have a lot of more detailed technical information on their forum about such court procedures.

http://www.debtorboards.com/